Shares of Internet infrastructure company Inktomi (Nasdaq: INKT) climbed nearly 14 percent on Friday, gaining 17-11/16 to 145 after the company announced a 2-for-1 stock split. The stock split will be payable on or around December 30th to shareholders of record on December 14th.
It is worth repeating that a stock split does not change anything related to the fundamentals of a company, but is simply a matter of chopping a pie into smaller pieces. Many companies have seen their stocks rise just by announcing a stock split.
As for Inktomi itself, the company is a solid Internet infrastructure play, but its stock has been on a roller-coaster ride this year. This stock is volatile, and investors might want to wait for a pullback before they buy.